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05-china-unicom-3gWo there … This is interesting. China Unicom appears to be preparing the launch of a “Wo” portal specially built for iPhone. This portal will make it easier for iPhone owners (including the 1.5+ million grey-market iPhones now in China) to download China Unicom’s own apps and wireless value added services (WVAS). It is also likely that many China Unicom apps/services will come preloaded on the new models (A1324 and A1325) built for China Unicom.

Here are a few images, now circulating in China, of the new “Wo” portal for iPhone:

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Background:

One raging debate amongst China iPhone watchers has been how Apple might modify their China App Store (now “officially” supporting iPod Touch only)?

There have been reports in China’s tech press that Apple will soon be making technical and logistical changes to comply with China’s telecom regulations. Among the complications are rules that require local servers (servers physically domiciled in China) for providers of wireless value added services (WVAS). There are also special licensing requirements for WVAS providers. Now add into the mix rumors that Apple would cede delivery of applications to a China Unicom version of Apple’s China App Store. There were even reports that Fujian-based NetDragon Websoft would operate Apple’s China App Store, but this rumor was flatly denied by NetDragon. NetDragon may prefer to continue supporting their own alternative app store dubbed 91.com or Panda Space.

One other matter to resolve is credit card ownership in China (a requirement on iTunes). The majority of consumers in China do not own a major credit card (“major” = those currently accepted by iTunes). Most wireless customers prefer to pay their phone bill in cash via the post office or via a select number of retailers that are integrated with carriers’ billing systems.

How will Apple adjust to the China market in the delivery of (and payment for) apps? Right now there are more questions than answers:

  • Will Apple retain full or partial control over their China App Store?
  • Will Apple integrate iTunes/App Store payments with China Unicom’s payment systems? Will there be prepaid iTunes/App Store accounts – ex: prepay 100 CYN (USD $14.65) per month and iTunes alerts you when you’ve run out of money?
  • Will there be full localization of the China App Store?
  • Will Apple create a clone version of their China App Store to be operated by China Unicom?
  • Beyond normal app review/approval procedures, what additional scrutiny will apps for the China market be under given China’s censorship tendencies?
  • Will Apple work closely with China Unicom on a “Wo” portal, specially built for iPhone, that will deliver of a select number of China Unicom’s apps and WVAS? The answer to this last question appears to be “yes.”

Thanks to Lan for links!

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